MUMBAI (Reuters) - The rupee eased a tad on Wednesday after trading in a tight range, with the Reserve Bank of India (RBI) holding off the Indian unit from testing a 10-year high, dealers said.
The partially convertible rupee ended at 39.28/29 per dollar, softer than the previous close of 39.265/275.
The rupee hit a peak of 39.16 in November, its highest in almost 10 years, and suspected RBI intervention has repeatedly blocked attempts to test the level this week.
"The rupee is stuck around this mark, and there's very little anyone can do about it at the moment," said a dealer with a private bank.
The market seemed resolved to selling rupees to the RBI, that is said to intervene to reduce volatility and help defend exporters' margins, which were dented by the local unit's 12 percent rise in 2007.
The rupee received little direction from the benchmark share index, which ended flat in choppy trade after hitting a fifth record high of the new year.
With strong capital flows slated for a slew of initial share offerings expected to continue, the rupee is expected to gradually appreciate, dealers said.
Utility Reliance Power is set to raise up to $3 billion in an initial public offer next week, which would be India's biggest-ever IPO.
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